Oct 30, 2022
VOT Research Desk

Market Insights, Considerations & Analytics

Technical Prediction for US Stock Indices: Weekly Trade Levels

SPX500 resistance 3906/07, 4007, and 4105, support 3664, 3419-3501 (important), and 3142-3219

Support and resistance levels for the Nasdaq – support 11119, 10589, 9206-9446 – resistance 11693/861, 12208, 12467/668

Support for the Dow is at 28323, 26982-27583, and 25371; resistance is at 32806, 33248, and 34006

The S&P 500, Nasdaq, and Dow Jones Industrial Average all gained ground for a second week in a row, building on recent gains off tech support. The FOMC interest rate decision and US non-farm payrolls (NFP) are anticipated to increase volatility into the November begin, despite the charts showing room for additional near-term gains. Next week, the attention will shift to major event risk. On the weekly technical charts of the S&P 500 (SPX500), Nasdaq (NDX), and Dow Jones Industrial Average (US30), these are the goals and invalidation levels that matter.

The August 2019 high-week close and the 50% retracement of the 2020 rise establish the 3419–3501 range, which the SPX was exposed to further falls towards. The next week, the index touched a low of 3491 while rising again, with the succeeding rally extending by an additional 11.3% from the lows. Price is currently moving into initial resistance near the May low-week closing / 100% continuation of the October bounce at 3906/07; watching for a response off this level to provide direction.

If this threshold is breached on the upside and the weekly closure is above it, attention will remain on the next resistance levels at the February swing trough at 4105 and the 61.8% Fibonacci retracement of the August slide at 4007, both of which are potential areas of topside saturation IF achieved. The 2021 low at 3664 and 3417–3501 provide initial weekly support; a break weaker from there would signal the return of the larger downturn toward the next significant support zone at 3142–3219.

In conclusion, the S&P 500 rebound is getting close to initial resistance targets, and we are keeping an eye out for any signs of potential topside depletion into decline resistance. Consider reducing long exposure and raising defensive stops on a push towards 4100 from a trading perspective. A closure below 3664 will encourage another test of the lows and more declines.

Weekly simple Moving Averages